SOC 2 vs SOX highlights the differences between two important compliance frameworks focused on organizational controls, but with distinct purposes. SOC 2 (System and Organization Controls 2) is designed to evaluate how service providers manage customer data based on Trust Services Criteria: security, availability, processing integrity, confidentiality, and privacy. It is commonly used by SaaS and technology companies to assure clients their systems are secure and reliable. In contrast, SOX (Sarbanes-Oxley Act) is a U.S. federal law focused on financial reporting and internal controls to prevent corporate fraud, primarily affecting publicly traded companies. While SOC 2 is performed by independent auditors for assurance over data protection, SOX compliance involves internal controls over financial reporting.